Polar Capital Holdings PLC (AIM:POLR) has had its price target raised to 750p from 700p by Deutsche Bank, which reiterated a 'buy' recommendation after a third-quarter update that met expectations and the announcement of a £15 million share buyback.
It follows an update in which the asset manager reported assets under management of £28.4 billion and flat net flows in the quarter, putting the performance in line with forecasts.
Net performance fees of £16 million were described as broadly in line with expectations and slightly ahead of the company’s most recent formal guidance of £15 million.
The bank said trading had started positively in the current quarter, estimating that assets under management had risen to about £29.4 billion so far in January, up around 4% from the December 2025 level.
It attributed the increase to positive market movements and flat net flows.
After Polar Capital announced its first formal share buyback programme, Deutsche noted that it compares with a surplus capital position of £74 million disclosed in September 2025 and said it would be “comfortably covered”, while still leaving ample capital for other uses.
Management at the fund manager said the decision reflected higher-than-normal performance fee profits and demonstrated confidence in the business alongside a disciplined approach to capital allocation.
Deutsche added that, on around 8x earnings and an 8% yield, the shares “look cheap”.